Bullion & Business Monthly Report – February, 2010

New York gold prices rallied on Friday to mark a second day of gains, cutting into weekly losses while recording the first monthly advance since November. The yellow metal began climbing on Thursday as the dollar weakened and investors became less risk averse.

Major U.S. stock indexes finished slightly lower during the final week in February — breaking a two-week winning streak, but the Dow and the S&P 500, like gold, had their best monthly gains since November, and the Nasdaq its best since December. European indexes finished the week lower as well. They were mixed in February, with the German DAX and Paris CAC 40 registering respective 0.2 percent and 0.8 percent losses while the London FTSE rallied 3.2 percent.

New York crude oil also broke a two-week streak, falling modestly. However, oil rose sharply in February, jumping 9.3 percent and nearing $80 a barrel.

Gold for April delivery finished at $1,118.90 for a weekly loss of $3.20, or 0.3 percent. Silver futures for May delivery ended at $16.521 an ounce, gaining 10.8 cents, or 0.7 percent on the week. Platinum for April delivery closed to $1,539.90, falling $3.70 or 0.2 percent.

"You’ve got to look to play gold on the long side," Matt Zeman, a metals trader at LaSalle Futures Group in Chicago, said on Bloomberg. "Fiat currencies continue to lose credibility. Even if Greece gets rescued, there will be another country in line with their hands out. People are flocking to gold to shield themselves from the volatility in the currency markets."

Gold on Friday was fixed at $1,108.25 an ounce, falling $4.50, or 0.4 percent for the week. Silver ended at $16.12 an ounce, for a weekly increase of 17 cents, or 1.1 percent. Platinum settled at $1,533.00 an ounce, rising $20.00 or 1.3 percent since last Friday.

"Gold has a split personality in a schizophrenic market," Jay Feuerstein, a commodities trader and founder of 2100 Xenon, said on MarketWatch. "Sometimes gold trades like a de facto currency and sometimes it participates in a flight to quality, and now it’s battling between the two."

"Gold prices showed additional firmness overnight and early [Friday]. Bullion prices managed to remain above the $1,100 an ounce mark as additional weakness pushed the U.S. dollar to near 80.50 on the trade-weighted index and as European stocks edged higher, reflecting a bit of a fresh resurgence in risk appetite," wrote Jon Nadler, senior analyst at Kitco Metals, Inc.

Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.

London Fix Charts: Silver, Gold and Platinum

(February 19 – 26)

The London Fix is one of the most used bullion quotes around the world. The London AM fix for gold and platinum begins at 10:30am GMT (5:30am in New York), and the PM fix begins at 3pm GMT (10am in New York). The London Fix for silver begins each business day at 12pm GMT (7am in New York).

London Fix Precious Metals Prices

(Feb 19 – 26)

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

1.1%

$0.17

$16.12

Gold

X

-0.4%

-$4.50

$1,108.25

Platinum

X

1.3%

$20.00

$1,533.00

(Feb 12 – 19)

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

4.0%

$0.62

$15.95

Gold

X

2.8%

$30.75

$1,112.75

Platinum

X

0.5%

$8.00

$1,513.00

(Feb 5 – 12)

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

1.1%

$0.16

$15.33

Gold

X

2.3%

$24.00

$1,082.00

Platinum

X

2.0%

$30.00

$1,505.00

(Jan 29 – Feb 5)

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

-6.9%

-$1.12

$15.17

Gold

X

-1.9%

-$20.50

$1,058.00

Platinum

X

-2.4%

-$37.00

$1,475.00

(Jan 22 – 29)

Up

Down

Week % Change

Week $ Change

Friday Close

Silver

X

-5.7%

-$0.99

$16.29

Gold

X

-0.5%

-$5.50

$1,078.50

Platinum

X

-1.8%

-$28.00

$1,512.00

*Week change numbers are for Friday PM-Friday PM (Unless a time is closed for holidays)

Weekly World Business News: Oil, Gasoline, and Stocks Prices

Oil prices gained on Friday, "as an upward revision in U.S. gross domestic product for the fourth quarter helped revive sentiment," wrote Edward McAllister of Reuters.

"The positive GDP number is putting upward pressure on prices," Peter Beutel, president of trading adviser Cameron Hanover Inc. in New Canaan, Connecticut, said on Bloomberg. "We are going to be focused on anything that gives an indication of where the economy is going."

New York crude-oil for April delivery surged $1.49, or 1.9 percent, to close at $79.66 a barrel. The price is 0.5 percent lower than last week, but represents a gain of $6.77 in February. The 9.3 pecent was the biggest since May.

Prices at the pump rose two-tenths of a cent between Friday and Saturday. The national average for regular unleaded gasoline is $2.703 a gallon, according to a AAA fuel report. The price is 6.9 cents higher than last week, 13 cents more than a month back, and 82 cents above that of a year ago.

U.S. stocks ended slightly higher on Friday,"as investors showed caution after a surprise drop in existing home sales, a surprise rise in GDP growth and AIG’s worse-than-expected quarterly decline," wrote Alexandra Twin of CNNMoney.

"It’s often a case of taking a couple steps forward, a couple steps back right now," portfolio manager Frank Ingarra, of Hennessy Funds, said on MarketWatch. "But I think the overall trend is that we’re starting to see the markets get back to normal. We’re fine for the long term, but in the near term, you can have some rough stretches."

For the week, the Dow fell 0.7 percent, the S&P declined 0.4 percent and the Nasdaq ended down 0.3 percent. For February, the indexes had respective increases of 2.6 percent, 2.9 percent, and 4.2 percent.

Friday closing figures for the three major US indexes follow:

The Dow gained 4.23 points to close at 10,325.26.

The S&P rose 1.55 points closing to 1,104.49.

The NASDAQ climbed 4.04 points to end at 2,238.26.

And in other world markets:

The German DAX rose 66.13 points to close at 5,598.46.

The Paris CAC 40 advanced 68.03 points to close at 3,708.80.

And the London FTSE 100 gained 76.30 points to finish at 5,354.52.

Bullion and Business Articles

In related bullion, business and United States Mint news, interesting or quick-read articles from the week include:

US Mint 2010 Gold Eagle Coin Values
The price of gold is affecting demand, and seller inventory levels. The yellow metal premiered at just above $1,120 to start 2010. Prices rose to over $1,150 within the first week, but then retreated toward $1,058 by early February. Gold has since returned to the $1,120 area. Both buyers and sellers have been cautious given gold’s volatility. As a prime example, less than one hundred 2010 American Gold Eagles have been auctioned on eBay US. It is sketchy at best to scrutinize the eagles too deeply with so few sold, but the numbers are nevertheless worth noting …

US Mint Sales: Bullion Eagles Steady
Gold coins enjoyed decent weekly gains. The proof Gold Buffalo advanced 771 to 47,599. As a group, First Spouse Gold coins rallied by 446. The uncirculated Anna Harrison coin was the biggest individual gainer, rising 118. Collectors are expecting these coins to go off sale with the upcoming release of the Abigail Fillmore gold coins. The Mint’s previous schedule had that set for March 4, but now the release date listed is a generic “March” time frame. Interested parties best buy while they can, as …